Naqvi says One Constitution Avenue to be converted into five-star hotel in 'coming months'

Iqbal says CDA involved in irregularities, fraud, Tarar says matter will be referred to NAB for further investigation

Interior Minister Mohsin Naqvi announced on Wednesday that One Constitution Avenue would be converted into a five-star hotel, assuring that all those entitled to compensation would be paid their dues.

In a press conference in Islamabad, Naqvi said that a joint investigation team (JIT) report on the project was presented before the federal cabinet and action had been taken on its recommendations, further adding that the government had now legally taken possession of the property.

Naqvi added: "We will convert this building to a five-star hotel in the coming months, which was its basic purpose in the first place. There is a severe shortage of hotels in Islamabad, and soon we will try to sign an agreement with a big chain for this purpose."

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— Radio Pakistan (@RadioPakistan) November 4, 2026

Read: IHC issues detailed verdict in One Constitution Avenue case, rules buyers have no legal claim to ownership

“As per JIT recommendations, we will try to make rightful payments to the occupants,” Naqvi stated, adding that this was binding on the government after the report.

In an earlier press conference, Planning Minister Ahsan Iqbal, speaking alongside Information Minister Attaullah Tarar and Minister of State for Interior Talal Chaudhry, said that a JIT report submitted to the cabinet had found "irregularities and rigging" in the One Constitution Avenue project.

He said: "The prime minister had ordered an inquiry committee into the fraud that took place in the name of One Constitution Avenue, and today the JIT report was placed before the cabinet, which consisted of members from NAB, FIA, FBR, SECP, IB and ISI. They investigated the entire project and submitted a report that the cabinet considered today."

Planning Minister Ahsan Iqbal has said that the Joint Investigation Team's report has uncovered serious irregularities, manipulation, and fraud in the One Constitution Avenue project in Islamabad.@PlanComPakistan @betterpakistan @MoIB_Official @CDAIslamabad #RadioPakistan… pic.twitter.com/WiDPOGye3r

— Radio Pakistan (@RadioPakistan) November 4, 2026

The planning minister underscored that the bidding process for the project was manipulated, further noting that the Capital Development Authority (CDA) was found not only to be "negligent" but also culpable and "involved" in the irregularities and fraud that took place.

Read More: CDA put on notice in One Constitution Avenue case

The minister added: "The rules were relaxed to favour certain individuals, and the company that was given the lease was not the rightful claimant of the lease".

He further stated that the precondition of a bank guarantee was removed to favour the developer, adding that the paperwork submitted for the project was also found to be dubious.

Iqbal underlined that the apartments that were sold were done so "illegally", further noting that the project was initially approved as a five-star hotel but was later converted into selling apartments.

"The JIT identified the individuals involved in the manipulation, including Abdul Hafeez Shaikh, who is the mastermind and has connived with officers from CDA," he said.

The minister also stated that other CDA officers, including former chairman Kamran Lashari, Dr Faisal Awan, and Azhar Ali Chaudhry, were also involved in this fraud.

He said that these "individuals defrauded many Pakistanis of their savings and secured personal financial benefit from this project".

Iqbal stated that the recommendations of the JIT report maintain that Shaikh and his company were "prosecuted" and also "blacklisted" for any future public sector projects.

The minister added: "The project should be redirected towards its original purpose, and a transparent bidding process should be carried out, and security clearance from institutions should be obtained. Fire safety and other protocols must also be ensured."

Iqbal said that the project should also be renamed because the name of One Constitution Avenue was taken through deceit, as the first building on Constitution Avenue was the Ministry of Foreign Affairs. "They only took the name of One Constitution for marketing purposes."

For those people who invested in this project and were deceived, it is the government's responsibility to compensate, and the principal amount plus interest would be returned, so that they do not suffer any loss.

The minister added that JIT also recommended that CDA and its ordinance should be overhauled and an independent master plan commission should be established.

"All records will be digitised so that nobody can manipulate the records, and officers will be rotated every two years," he said.

Tarar says no one above the law in One Constitution Avenue case

Tarar, also speaking at the press conference, said the government would ensure equal application of law in the One Constitution Avenue project, making it clear that neither influential individuals nor wealthy people would be allowed to escape accountability.

Federal Minister Attaullah Tarar said the government would ensure equal application of law in the One Constitution Avenue project, making it clear that neither influential individuals nor wealthy people would be allowed to escape accountability.#AttaTarrar #OneConstitutionAvenue pic.twitter.com/ybz6WnaE6c

— APP (@appcsocialmedia) November 4, 2026

The minister said the JIT, constituted to examine irregularities in the One Constitution Avenue project, had identified shortcomings in the process dating back to the mid-2000s and also pointed out the officials involved at the time of the award of the contract.

He said the JIT had conducted a fair investigation, identified the offences and those responsible, and recommended that the matter be referred to the National Accountability Bureau (NAB) for further investigation.

Tarar said the government was equally committed to protecting bona fide investors who had purchased apartments in the project with their hard-earned money without knowledge of the alleged irregularities.

He added the JIT had also recommended safeguarding the interests of genuine investors, including those residing in Pakistan and abroad, and ensuring appropriate compensation for their investments in view of the proposed re-tendering and redesigning of the project.

He said the NAB investigation would be conducted strictly on merit and expedited, with a target of completion within three months, followed by the initiation of the trial process.

Background of One Constitution Avenue case

On May 19, a division bench of the Islamabad High Court (IHC) comprising Justice Azam Khan and Justice Raja Inam Amin Minhas issued a notice to the CDA on the intra-court appeal submitted by the sub-lease holders of 20 more apartments of One Constitution Avenue and sought its response.

On May 4, the IHC issued a detailed verdict on the One Constitution Avenue project, upholding the Capital Development Authority's (CDA) decision and ruling that the buyers lack ownership rights.

The court stated that the buyers lacked ownership rights, as the project’s lease had been terminated and the proper legal processes had not been followed regarding the transfer of ownership.

On May 1, Prime Minister Shehbaz Sharif constituted a high-level committee to review the matter of One Constitution Avenue after authorities took control of a multi-storey residential building following a ruling by the IHC in a long-running dispute over the cancellation of its lease.

Also Read: PM constitutes high-level committee over One Constitution Avenue dispute, stays official action

The project originally stems from a 13.5-acre plot awarded to BNP Group following an auction on March 9, 2005, for Rs4.88 billion. Although possession was handed over the same year after an initial payment of Rs800 million, BNP has so far paid Rs1.02b, while the remaining Rs3.85b is recoverable in instalments until 2026.

In July 2016, the CDA cancelled the lease, citing multiple violations. The decision was upheld by the IHC in 2017, which also declared the conversion of a planned five-star hotel into luxury apartments illegal. However, the Supreme Court set aside that judgment in early 2019, directing the developer to pay Rs17.5b in instalments over eight years.

The CDA argued that BNP failed to meet its financial obligations after 21 years, maintaining that full ownership was conditional upon 100% payment of the land cost. Of the total Rs17.5b liability, only Rs2.9b — around 16.6% — has reportedly been paid.

The complex is reported to include apartments owned by several prominent figures, including Pakistan Tehreek-e-Insaf founder Imran Khan, Chaudhry Aitzaz Ahsan, Shandana Gulzar Aurangzeb, former minister Burjees Tahir, former caretaker prime minister Nasirul Mulk and Kashmala Tariq.